NextGenTel announces sale of Kvantel, publishes quarterly financials

30 Apr 2018

Norway’s NextGenTel Holding has agreed to sell business telephony provider Kvantel AS to Broadnet for NOK250 million (USD31.3 million). In a press release the operator noted that, while it has a growth strategy in the business market, it had decided to sell the unit following an ‘attractive offer’ from Broadnet. Indeed, despite the proposed transaction, NextGenTel has said it remains well positioned to deliver services to the business market through its Proximo Norge subsidiary. It has been claimed that the sale will have only a ‘marginal impact’ on operational cash flow, the deal will see ‘both datacom and telephony services in Kvantel … transferred to Broadnet’, though it was noted that ‘the platform and related employees producing the voice services for NextGenTel’ is not a part of the transaction. The transaction is subject to approval by the Norwegian competition authorities and is expected to be finalised by the end of May 2018. Commenting on the deal, NextGenTel chairman Lars B Thoresen said: ‘The sale provides us with significant liquidity, which increases the flexibility both financially and strategically in a changing telecom market.’

Separately, NextGenTel Holding has published its financial results for the quarter ended 31 March 2018, reporting revenues of NOK377.6 million, up from a restated figure of NOK318.3 million in the corresponding period a year earlier. EBITDA in the quarter under review totalled NOK106.6 million, more than double the NOK44.5 million in 1Q17, with operating profit standing at NOK71 million, much improved on an operating loss of NOK100,000. Notably, the telco confirmed that its results for 1Q18 included profit from the sale of consumer mobile customers to Telia in December 2017 (NOK75 million) and profit from the sale of selected fibre customers (NOK4.75 million).

In operational terms, NextGenTel’s total customer base in Norway was 200,500 at the end of Q1 2018, down from 241,500 three months earlier; the main driver for the decline was reported to be the reduction of 33,600 consumer mobile customers related to the aforementioned Telia transaction. Meanwhile, the customer base in international markets declined by 4,200 customers in Q1, mainly due to a fall in the number of white label customers in the Netherlands, bringing the total to 70,100 at end-March 2018.